The Bank of Russia eased the requirements for advances from non-residents

The Bank of Russia eased the requirements for advances from non-residents.

In the face of sanctions pressure, the Central Bank received additional powers to regulate currency and establish rules for the interaction of residents (natural persons permanently residing in the Russian Federation or legal entities registered in Russia) with non-residents, that is, foreign individuals and legal entities.

In particular, Decree of the President of the Russian Federation No. 126 dated March 18, 2022 establishes that the Board of Directors of the Central Bank of the Russian Federation is authorized to make decisions on the amount and amount of advance payments by residents in favor of non-residents under contracts, the list of which is also determined by the Central Bank. The Central Bank of the Russian Federation also received the right to set a limit on the purchase of foreign currency by non-residents in Russia.

Subsequently, the Bank of Russia clarified that it has the right to establish, tighten and soften requirements for the size of the advance, types of contracts, foreign exchange transactions. All decisions of the Central Bank are published on its official website.

On March 27, the Bank of Russia introduced restrictions on the amount of an advance or preliminary payment for residents in favor of non-residents. It was established that under foreign exchange contracts, the advance payment cannot be more than 30% of the total contract amount. Then this requirement caused negative consequences not only for business, but primarily affected the sphere of culture, namely book publishing. Publishers complained that the restriction did not take into account the specifics of working in the field of intellectual property, when the final fee cannot be known in advance and depends on sales.

Already on April 1, the requirement was relaxed, it was established that from April 2, the ban on advance payment of more than 30% does not apply to a number of contracts, in particular, contracts in the field of transport services, including logistics and the use of transport infrastructure. With regard to contracts, the subject of which is the provision of services, the performance of work, the transfer of information or the results of intellectual property, restrictions were lifted on them subject to the price limit under the contract - $15,000. This ban has now been completely lifted.

Also, banks that are non-residents from hostile states have received the right to conclude transactions on the Russian market for the purchase and sale of foreign currency in exchange for another currency, provided that the price of the contract corresponds to the prices for similar exchange-traded instruments in the Russian Federation and abroad (deviation is allowed only within 2 %).

We will be happy to provide you with legal assistance regarding the minimization of legal risks and available opportunities. We will try to find a solution that is right for you.

Call +7 (383) 310-38-76 or write to info@vitvet.com.

We recommend that you read our blog dedicated to legal and judicial cases (arbitration practice) and read the materials in the "Articles" section.

Our law firm provides various legal services in different cities of Russia (including Novosibirsk, Tomsk, Omsk, Barnaul, Krasnoyarsk, Kemerovo, Novokuznetsk, Irkutsk, Chita, Vladivostok, Moscow, St. Petersburg, Yekaterinburg, Nizhny Novgorod, Kazan, Samara, Chelyabinsk, Rostov-on-Don, Ufa, Volgograd, Perm, Voronezh, Saratov, Krasnodar, Togliatti, Sochi).

We will be glad to see you among our clients! Call or write right now!

Phone +7 (383) 310-38-76
Email info@vitvet.com

Law firm "Vetrov and partners"
more than just legal services